On Thursday, the FBI released a report, saying that over 1,204 mortgage fraud cases were investigated in the fiscal year of 2007, which finally terminated on Sept. 30. These cases ended in 321 indictments/court orders for over $595.9 million in restitutions. For the last year, almost $22 million was recovered with206 convictions being obtained. For 2006, there was only 818 cases, with 263 indictments, 204 convictions, and court orders totaling $388.9 million in restitutions, $1.4 million of which was recuperated. The number of fraudulent cases defiantly raised from 2006 to 2007, during the market slump.

Mortgage fraud can be considered as forged/falsified documents, misrepresented income/assets and a borrower´s motivation to obtain a property, or exaggerated appraisals. Many of those engaging in mortgage fraud are using the bad market to cover up their activities as foreclosure prevention.

At the moment the FBI ,along with the Securities and Exchange Commission, are looking into over 1,300 mortgage fraud cases, and are taking part in 19 corporate investigations. A task force is currently being made by New York prosecutors to see if any lenders/Wall Street firms acted fraudulently.